Japan shouldn’t rely solely on the BOJ to revive the national economy

Japan's government shouldn’t rely solely on the BOJ when it comes to boosting economic growth and defeating deflation, Finance Minister Taro Aso told on Friday, following the BOJ’s decision to reboot its monetary policy framework.

On Wednesday, Japan’s key financial institution dared to shift to targeting interest rates on Japan’s government bonds as the focus of its huge monetary easing program, thus dipping its explicit target of increasing base money.

Aso told after a cabinet meeting that he understands that it was adopted as a required step to meet the 2% inflation objective as quickly as possible based on a joint statement between the Japanese authorities and the BOJ.

Aso added that Japan’s government should get down to a substantial structural reform and carry out its plans to boost the economy. It’s clear that the BOJ's new framework can hardly have an immediate impact on government bond markets.